Commodities Rebound Higher on Continued Dollar Weakness

The GSCI Commodities futures index has rebounded and moved even higher, but volume is dampened slightly from prior levels in this daily chart. If the volume indicator doesn't move above its yellow moving average line within a few days, this may be suggestive of a consolidation phase in commodity prices. If this is the case, shorter-term trades of a few days could become the order of the day. Another sign of weakening commodity price strength occurs when higher highs close within the Bollinger Bands, which indicates slowing momentum and falling volatility. Even still, some commodities (energy, for example) may continue to show extreme price strength. Note that for now, the Klinger Volume indicator has moved below its moving average.